Concerns over access to face to face banking services in the Western Isles have been renewed following the closure of the Bank of Scotland branch in Balivanich.

Comhairle nan Eilean Siar Leader Cllr Paul Steele has criticised Lloyds Banking Group for pressing ahead with the closure despite objections from the council, the community and other elected representatives.

The Balivanich branch was the only remaining bank in Benbecula, serving residents, businesses and customers across Uist.

Cllr Steele said he wrote to Lloyds Banking Group on three occasions seeking a halt to the closure and met representatives of the company to outline the potential impact on island communities.

The Comhairle also responded to the LINK assessment process, highlighting concerns over access to cash withdrawal services.

Despite those representations, the bank has now closed.

Cllr Steele said:

“We are seeing a worrying trend of large corporations creating a monopoly of services on our islands and then withdrawing them with no concern for their loyal customers.

“As the only bank in Benbecula the Bank of Scotland provided a crucial service to the community, particularly to vulnerable residents and local businesses.

“The access to banking review must address this trend and ensure that legislation is put in place to stop the withdrawal of banking services where no equivalent alternative is available.

“I would encourage members of the review to visit Benbecula, to engage with the community and see firsthand the impact of the withdrawal of banking services.”

He added:

“As a resident of Uist and community representative I fully understand the effect this closure will have on our islands.

“I wish to again formally express my view that this decision was taken with inadequate understanding of the needs and circumstances of our community here in Uist.

“I would like to thank all those who have campaigned on this issue for their efforts.”

The issue comes as an independent review examines whether declining access to in person banking services is causing harm to consumers and businesses.

The Access to Banking Services Review, chaired by Richard Lloyd, was commissioned by the UK Government in May and is considering the impact of bank closures on communities across the country.

Comhairle nan Eilean Siar is encouraging residents and businesses affected by the withdrawal of services to take part in the review.

The quickest way to do that is to complete the online Survey.

Responses can also be sent by email to Accesstobankingservices@hmtreasury.gov.uk, or by writing to Access to Banking Services Review, Financial Services Group, 1st Floor, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ.

Submissions can be made online, by email or by post, with the deadline for responses set for 20 July.

For many island communities, the debate extends beyond banking, touching on wider questions about access to essential services, resilience and the long term sustainability of rural life.